UPDATE 1-Mosaic posts 42 pct fall in profit, says CEO to resume work

July 31 (Reuters) - Mosaic Co, North America's No.2
potash producer, reported a 42 percent slump in quarterly
profit, as average realized prices of potash fell by more than a
fourth.

The company also said Chief Executive Jim Prokopanko, who
has been on leave since May to undergo surgery to treat cancer,
will resume his duties on Aug. 4.

Mosaic, the world's largest producer of finished phosphate
products, and fellow potash producers have faced sharply lower
prices and profits since last summer's breakup of one of the
world's biggest potash traders, Belarusian Potash Co.

However, the lower prices have lately rekindled demand.

"We have long said we expected to see volumes increase
before prices, and that scenario is playing out as anticipated,"
Larry Stranghoener, Mosaic's interim CEO, said on Thursday.

"We expect demand to remain high throughout the year, and
with low global pipeline inventory, prices should remain firm,"
said Stranghoener, who will retire at the end of 2014.

Mosaic said it sold 3.4 million tonnes of phosphate in the
second quarter ended June 30 and 2.5 million tonnes of potash,
hitting the high ends of its forecast for both minerals.

Average realized prices of Mosaic's key products, diammonium
phosphate and muriate of potash, fell 2.5 percent to $465 per
tonne and 27 percent to $267 per tonne, respectively.
Continued...